Due Diligence Risk Factors

Due diligence risk factors are areas of an enterprise or project that should be assessed to determine if there are risk to the objectives and objectives. These include the financial and legal aspects and the operational and IT elements of a company.работни обувки fw34 steelite lusum s1p 38
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An example of due diligence is customer due diligence (CDD). This involves confirming an individual’s identity and assessing their degree of risk in order to ensure that they are in compliance with anti-money laundering regulations and preventing the financing of terrorism laws. CDD is usually performed before a customer is onboarded, and then at regular intervals throughout their relationship with the company. It’s important to understand the various risk categories and how often each one should be reviewed.

It would be untrue and disproportionate to expect an organisation to conduct CDD on every country, project or business partners it has around the world even if a few might only carry an extremely low risk of corruption. A company should therefore make use of its GIACC program to identify and categorise countries or projects, as well as business partners according to the likelihood of due diligence risk factors them being corrupt sources and with due diligence conducted on those considered to be greater than a low risk.

IT due diligence is another example of due diligence. This involves an evaluation of the company’s IT infrastructure security, cybersecurity, and data management practices. This could reveal potential risk or cost that could be related to the purchase of a target, like replacing equipment or software. It also can reveal any IT system weaknesses that could expose sensitive information.